Denver strip club faces historic license revocation battle

By 9News May 14, 2025 | updated 1 year ago

The Denver strip club was issued an order Wednesday by the city to prove why it shouldn't lose its license to operate over wage theft allegations

Rick's Cabaret and The Diamond Cabaret in Denver are both subject to a wage theft investigation said to be the largest the city has ever seen alleging an amount of nearly $14 million and involving 230 dancers and food and beverage workers. (Courtesy of Denver Auditor's Office)

For the first time in Denver history, the city is taking action to potentially revoke a business license due to reported wage theft.

Diamond Cabaret, located off Colfax Avenue, received a show cause order from Denver’s Department of Excise and Licenses on Wednesday. That order requires owners to demonstrate and prove why they shouldn’t lose their Adult Cabaret license to operate.

In February, the Denver Auditor’s Office announced an investigation found Diamond Cabaret “violated nearly every applicable provision” of Denver’s minimum wage and wage theft ordinances.

The strip clubs filed a lawsuit in early March asking for a gag order to prevent Denver Labor’s further “dissemination of falsehoods against the clubs.”

Attorneys for the clubs said they’ve complied with all local, state and federal laws related to “independent contractors” and accused Denver Labor of abusing its power.

For more on this story, visit our news partners at 9NEWS.com.

Rick's Cabaret and The Diamond Cabaret in Denver are both subject to a wage theft investigation said to be the largest the city has ever seen alleging an amount of nearly $14 million and involving 230 dancers and food and beverage workers. (Courtesy of Denver Auditor's Office) — Rick’s Cabaret and The Diamond Cabaret in Denver are both subject to a wage theft investigation said to be the largest the city has ever seen alleging an amount of nearly $14 million and involving 230 dancers and food and beverage workers. (Courtesy of Denver Auditor’s Office)

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